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MENENDEZ INTERVENED IN DONOR’S $9M MEDICARE DISPUTE – Carol D. Leonnig and Jerry Markon report on A1 of the Washington Post: “Sen. Robert Menendez raised concerns with top federal health-care officials twice in recent years about their finding that a Florida eye doctor — a close friend and major campaign donor — had overbilled the government by $8.9 million for care at his clinic, Menendez aides said Wednesday. Menendez (D-N.J.) initially contacted federal officials in 2009 about the government’s audit of Salomon Melgen, complaining to the director overseeing Medicare payments that it was unfair to penalize the doctor because the billing rules were ambiguous, the aides said.

-- “Last year, in a meeting with the acting administrator of the agency in charge of Medicare and Medicaid, Menendez again questioned whether federal auditors had been fair in their assessment of Melgen’s billing for eye injections to treat macular degeneration, the senator’s aides said. The agency had ordered Melgen to repay the $8.9 million, and at the time of both conversations, Melgen was disputing the agency’s conclusion. His appeal continues to this day. …

-- “Menendez, who became chairman of the Senate Foreign Relations Committee this month, is under scrutiny because of his close relationship with Melgen. The doctor donated more than $700,000 last year to Menendez’s reelection campaign and other Senate Democrats. And when Melgen needed help with a port security contract in the Dominican Republic last year, Menendez urged U.S. officials to press the country to carry out the multimillion-dollar agreement. Menendez is facing a Senate ethics inquiry about two free trips he took in 2010 on Melgen’s private plane to the doctor’s seaside mansion in the Dominican Republic. Menendez acknowledged this month that he had not properly disclosed the trips. He wrote a personal check for $58,500 to reimburse Melgen.” http://wapo.st/XnemHP

MENENDEZ FIGHTS BACK, HIRES EX-JUSTICE DEPT. FLACK – POLITICO’s Manu Raju and John Bresnahan report: “New Jersey Sen. Robert Menendez is moving behind-the-scenes to control the damage caused by a series of unseemly allegations involving his personal life that now loom over his chairmanship of the powerful Senate Foreign Relations Committee and could threaten his standing with Senate Democrats. Menendez’s aides are quietly laying out a detailed defense to Democratic pundits, operatives and TV talking heads in New Jersey and Washington in which they characterize the scandal as one without merit and peddled by his political opponents. …

-- “In one key move, Menendez has begun to rely on trusted aides and former advisers for guidance, including one who is very close to Attorney General Eric Holder. Menendez’s campaign has hired Matt Miller, a former top spokesman for the Justice Department — which is investigating a campaign donor caught up in the scandal — under Holder. ‘Bob Menendez has been a friend and a mentor for years,’ Miller said. ‘And like a lot of people, I want to do anything I can to help fight these ridiculous smears.’ …

-- “On Tuesday night, Tricia Enright, a Menendez spokeswoman, sent a point-by-point rebuttal of the charges to Democratic pundits, media types and allies in Washington and New Jersey circles, with the subject title ‘Dem friends.’ ‘Targeting Menendez on prostitutes didn’t work,” Enright said in the email, which was obtained by POLITICO. ‘Targeting him on the flights has been easily corrected. … But the smear machine continues.’ The email tries to paint Menendez in a human light — discussing how at the age of 19, a young Menendez ran for the local school board — while ferociously attacking opponents ‘who will sink to anything.’” http://politi.co/WvfYBR

New York Times, A1, “Congress to See Memo Backing Drone Attacks on Americans,” By Michael D. Shear and Scott Shane: “The White House on Wednesday directed the Justice Department to release to the two Congressional Intelligence Committees classified documents discussing the legal justification for killing, by drone strikes and other means, American citizens abroad who are considered terrorists. The White House announcement appears to refer to a long, detailed 2010 memo from the Justice Department’s Office of Legal Counsel justifying the killing of Anwar al-Awlaki, an American-born cleric who had joined Al Qaeda in Yemen. He was killed in a C.I.A. drone strike in September 2011. Members of Congress have long demanded access to the legal memorandum.

-- “The decision to release the legal memo to the Intelligence Committees came under pressure, two days after a bipartisan group of 11 senators joined a growing chorus asking for more information about the legal justification for targeted killings, especially of Americans. The announcement also came on the eve of the confirmation hearing scheduled for Thursday afternoon for John O. Brennan, President Obama’s choice to be director of the C.I.A., who has been the chief architect of the drone program as Mr. Obama’s counterterrorism adviser.” http://nyti.ms/WBYBxl

JOHN BRENNAN TESTIFIES before the Senate Intelligence Committee at 2:30 p.m. in Hart 216.

POSTPONED: The Senate Armed Services Committee vote on the nomination of Chuck Hagel to be Defense secretary has been delayed amid pressure from Republicans over his financial disclosures: http://politi.co/WzbWGA

RUBIO TO GIVE BILINGUAL GOP RESPONSE TO STATE OF THE UNION – Marc Caputo writes in the Miami Herald: “Marco Rubio won’t just give the Republican rebuttal to President Barack Obama’s State of the Union speech on Tuesday night. The Florida Senator will give two. One in English. Otro en Español. It’s the first time such a high-profile speech will be given in two languages by the same person, and it’s a sign of how crucial the Rubio has become in the GOP efforts to draw more Hispanic support and rebrand the party.” http://hrld.us/VFYU84

-- Freshman Sen. Jeff Flake (R-Ariz.), a member of a bipartisan Senate gang pushing immigration reform, called Rubio the “linchpin” of the effort. Flake sat down with POLITICO’s Jonathan Allen and Lois Romano: “‘It would be not a good sign if, you know, a few of us said we’re just not going to stay in,’ Flake said in an interview in his office Wednesday. ‘It’s important. When you look at the individuals involved, they’re people who want to get it done. It’s not comprised of people who just want to make a statement and then move on, and so that gives me some hope that we can see it through.’ … Flake added that it was critical that Rubio, the most prominent Latino elected politician in the country, ‘has stepped forward [on immigration reform]. He’s the real linchpin in this effort.’” http://politi.co/TMWYOx

‘SILVER LININGS PLAYBOOK’ DIRECTOR AND BIPARTISAN SENATORS PUSH FOR MENTAL HEALTH BILL -- Silver Linings Playbook Director David O. Russell will join senators Thursday to speak about removing the stigma of mental health and expanding access to treatment. The Mental Health Act, introduced in the wake of the Newtown shooting, puts mental health centers on more equal footing with other health centers by improving quality standards and expanding access to ensure more people can get the mental health care they need. The bill is sponsored by Senators Debbie Stabenow (D-Mich.) and Roy Blunt (R-Mo.). Sens. Jack Reed, Susan Collins, Barbara Boxer, Marco Rubio and Patrick Leahy are also co-sponsors. 1 p.m. today in the Senate’s Mansfield Room.

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GOOD THURSDAY MORNING, FEBRUARY 7, 2013, and welcome to The Huddle, your play-by-play preview of the day’s congressional news. Send tips, suggestions, comments, complaints and corrections to swong@politico.com. If you don't already, please follow me on Twitter @scottwongDC.

My new followers include but are not limited to ‏@BenGoodman and @WaysMeansCmte.

TODAY IN CONGRESS – The House is out today as Democrats hold their annual Issues Conference in Leesburg, Va. The Senate is in at 9:30 a.m. and is expected to vote to reauthorize the Violence Against Women Act. At noon Thursday, Sen.-designate William Cowan of Massachusetts will be sworn-in.

AROUND THE HILL – Sen. Sherrod Brown holds a conference call on effects of cracking down on Chinese trade barriers, at 12:30 p.m. Call 202-224-3978 to RSVP and receive call-in information. At 1:30 p.m. in S-342, Maryland Sens. Barbara Mikulski and Ben Cardin will collect the spoils of their friendly wager with California Sens. Barbara Boxer and Dianne Feinstein following the Baltimore Ravens victory over the San Francisco 49ers at Super Bowl XLVII.

House Minority Leader Nancy Pelosi, Rep. Mike Thompson, chairman of the House Gun Violence Prevention Task Force, and other House Democratic leaders hold a press conference on gun control at 1:45 p.m. at Lansdowne Resort, 44050 Woodridge Parkway in Leesburg, Va.

Sens. Michael Bennet, John McCain and Amy Klobuchar join a discussion hosted by The Atlantic titled “Immigration Reform and Tomorrow’s Manufacturing Workforce,” 4 p.m. at The Newseum. RSVP to sclemons@theatlantic.com.

ABOUT LAST NIGHT … TWITTER TRAFFIC FROM THE WPCF CONGRESSIONAL DINNER:‏

@JudyKurtz: Sen Heitkamp says people are shocked that a "redheaded, post menopausal Democrat" won a seat in North Dakota. "To you, I'm like a unicorn."

DEMS DRAFTING LEGISLATION TO STAVE OFF SEQUESTER – Jonathan Weisman and Elizabeth Bumiller report for the New York Times: “With at least one million jobs on the line, Senate Democrats on Wednesday said they were closing in on legislation to temporarily head off nearly $1 trillion in cuts that were already affecting Pentagon decision-making and could force significant reductions in staffing and services across the government. Despite strong resistance from Republican leaders to new tax revenues, Democrats said that they expected the onset of federal furloughs and layoffs on March 1 to make Republicans more receptive to an emerging solution that would combine spending cuts with revenue from closing tax loopholes. Lawmakers were being spurred by increasingly dire warnings from top Pentagon officials about the implications of the automatic reductions. …

--“At a closed-door retreat in Annapolis, Md., this week, Senate Democratic leaders struck a populist tone. They suggested they could rally public support for a measure that would temporarily suspend the cuts by limiting tax breaks for oil and gas exploration, reducing the tax advantages for wealthy private-equity employees who pay a lower 20 percent capital gains rate on much of their income, and ending tax deductions for the cost of moving business functions overseas. A presentation by Senator Patty Murray of Washington, who spoke along with Senators Max Baucus of Montana and Barbara Mikulski of Maryland, described the income gains of the richest 1 percent of Americans amid rising poverty and stagnating middle-class incomes.” http://nyti.ms/XROSlY

BROUN’S JUMPS INTO SENATE RACE AS GOP FRETS – Joshua Miller reports for Roll Call: “Conservative Rep. Paul Broun once called evolution, embryology and the big-bang theory ‘lies straight from the pit of Hell.’ For Republicans yearning for Senate candidates who can appeal to moderate voters and win general elections, that’s exactly where Broun has come from. On Wednesday, the Georgian became the first member of the GOP to launch a bid to succeed retiring Republican Sen. Saxby Chambliss in 2014. His announcement kicks off what could be the longest, bloodiest, most ideological Senate primary this cycle — just as the party grapples with how to nominate candidates with broader electoral appeal.

-- ‘A group of influential Republicans, including strategist Karl Rove and American Crossroads President Steven Law, announced over the weekend a new third-party group to support conservative GOP candidates who can win general elections. They were partly inspired by last cycle’s Senate losses in Indiana and Missouri, where the conservative primary victors lost races in traditionally GOP states. Multiple Republican strategists familiar with the Senate landscape privately described Broun as being in the mold of those two 2012 Senate nominees. He recently said ‘the only Constitution that Barack Obama upholds is the Soviet constitution.’ … The good news for Republicans: Broun could be joined by two to four fellow House members. Republican Reps. Phil Gingrey, Tom Graves, Jack Kingston and Tom Price are mulling bids.” http://bit.ly/1210lAG

KARL ROVE VS. THE TEA PARTY -- Kenneth P. Vogel and Alexander Burns and Tarini Parti report for POLITICO: “The message from Karl Rove’s allies to rich donors is pretty simple: We need your cash to avoid repeating the problems that tanked our $300 million 2012 effort, and we can promise you anonymity. The Conservative Victory Project, the new spin-off from Rove’s Crossroads groups, will consist of a super PAC that discloses its donations, and POLITICO has learned it will also include a tax-exempt group that allows it to shield donors. In essence, this is the GOP establishment’s attempt to make candidates for Republican nominations prove themselves before blowing winnable elections like Todd Akin and Christine O’Donnell, and Rove’s allies hope the combination of cash and scrutiny does the trick. …

--“Law outlined plans to essentially perform oppo research and grade potential candidates on a variety of factors that might affect their ability to win a general election contest, including using fundraising reports “like earnings calls” to evaluate “the competitiveness of candidates.” And he signaled that Crossroads would mobilize other big-money groups in its network to help avert damaging primaries.” http://politi.co/Yce1Xq

ETHICS COMMITTEE WON’T FORM SPECIAL PANEL TO PROBE SCHOCK – John Bresnahan reports for POLITICO: “The House Ethics Committee will not form a special investigative panel to probe allegations that GOP Rep. Aaron Schock (Ill.) improperly solicited super PAC contributions from other Republican lawmakers, including Majority Leader Eric Cantor (R-Va.). But it is not dropping the case either. An Office of Congressional Ethics report from August called for a full-scale investigation into the case. In addition, OCE found that there was “substantial reason to believe” that Schock violated federal law in seeking the contributions. The OCE report also states that a senior Republican staffer who formerly worked for Cantor — Rob Collins — refused to cooperate with OCE investigators when they looked into the matter. Collins is now the executive director of the National Republican Senatorial Committee.” http://politi.co/Wv30nv

-- The House Ethics Committee also stopped short of launching a formal investigation into whether Rep. Bill Owens took an improperly funded trip to Taiwan. http://politi.co/Wv5ja0

WEDNESDAY’STRIVIA WINNER – Jeffrey Last was first to correctly name a father and son duo who have chaired the same committee in Congress: Bill Schuster now chairs the same House Transportation and Infrastructure Committee that his father, Bud Shuster, once chaired.

John Clark gets points for creativity. He answered that Charlie Gonzalez and his father, the late Henry Gonzalez, both served as chairman of the Congressional Hispanic Caucus.

TODAY’S TRIVIA – Paul Curran has today’s question: Which current lawmaker gained political campaign experience as a child by placing bumper stickers for Lawton Chiles of Florida. First to correctly answer gets a mention in the next day’s Huddle. Email me at swong@politico.com.

GET HUDDLE emailed to your Blackberry, iPhone or other mobile device each morning. Just enter your email address where it says “Sign Up.” http://www.politico.com/huddle/

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